Figma (FIG) Q4 earnings report 2025

figma Shares rose 15% in extended trading Wednesday after the design software maker reported stronger results and quarterly guidance than Wall Street had predicted.

Here is the company’s performance compared to the LSEG consensus:

• Earnings per share: 8 cents corrected, 7 cents expected
• Revenues: $303.8 million while expectation was $293.15 million

Figma’s revenue increased 40% year over year in the fourth quarter. expression. The company had a net loss of $226.6 million, or 44 cents per share, compared to net income of $33.1 million, or 15 cents per share, in the fourth quarter of 2024.

Management is calling for $315 million to $317 million in first-quarter revenue, implying growth of 38%. Analysts surveyed by LSEG were expecting $292 million.

Figma projects adjusted operating income of $100 million to $110 million and revenue of $1.366 billion to $1.374 billion for 2026; This means a 30% revenue increase. LSEG revenue consensus was $1.29 billion.

Recently, investors have become more concerned that generative AI products could undermine the growth prospects of software companies. As of Wednesday’s close, Figma shares are down nearly 35% year to date, while the iShares Expanded Technology-Software Sector Exchange Traded Fund is down 22%. The S&P 500 index gained almost 1% in the same period.

Customers are sticking around and spending more. Figma’s net dollar retention from customers contributing at least $10,000 in annual revenue rose from 131% to 136% in the third quarter, beating the company’s internal expectations, Praveer Melwani, the company’s finance chief, said on a conference call with analysts.

“If you look at software, it’s not just going to disappear, it’s going to be much more than ever before,” Figma co-founder and CEO Dylan Field said in an interview Wednesday. But he said the market was “potentially becoming increasingly competitive.”

The company, which went public in July, wants people to benefit from turning to artificial intelligence products for design. The Figma Make tool allows people to have Anthropic and AI models by typing a few words. Google Interpret information to create application prototypes. More than half of customers spending over $100,000 in annual income had people using Figma Make every week during the quarter, according to the release.

Melwani said Figma was able to reduce the cost of running the Make service for end users by optimizing its computing infrastructure. Even though Figma Make’s weekly active users increased 70% from the third quarter, the company’s adjusted gross margin remained at 86%.

Soon Figma will generate more revenue from the adoption of AI. In March, it will begin implementing monthly AI credit limits for different types of account holders. Customers will pay based on monthly usage or sign up for AI credit subscriptions. blog post Starting from December.

“What we have observed is that there tends to be a power law distribution where a subset of users within an organization takes on very large value and therefore exceeds the prescribed limits that we plan to impose,” Melwani said. “Our expectation now is that this will continue to evolve.”

Also during the quarter, Figma released a statement: partnership with ServiceNow transforming designs into applications that large companies can adopt.

“We were pleased to see positive comments on both Figma Make and Figma Design, indicating the growing adoption of AI workflows on the Figma platform,” RBC analyst Rishi Jaluria wrote in a note to clients with the equivalent of a hold rating on the stock.

There may be an area where Figma can appeal to new types of enterprise workers beyond developers, designers, and marketers. Product managers, for example, are becoming increasingly interested in Figma files, Field said on a conference call with analysts.

“I think there are a lot of opportunities to start reaching use cases like UX in general [user experience] including researchers and other use cases on the team,” he said.

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